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IKEA Southeast Asia Turnover Reaches THB 29 billion

IKEA Southeast Asia Turnover Reaches THB 29 billion
Corporate newsReports and summaries, RetailSeptember 25, 2019Last edited: July 2, 2021

Swedish home furnishing retailer growing as it meets a new generation of customers

BANGKOK – Sales at our IKEA stores in Southeast Asia topped THB 25 billion for the first time this year, reflecting healthy growth for a big-box retail business that is meeting a new generation of shoppers and creating fresh passion for home furnishing.

Our more than 3,400 co-workers met around 98million visitors in our stores and centres, rolled outecommerce in Thailand, embarked on construction projects in new markets and helped sell 113,000BILLY bookcases – along with thousands of other affordable home furnishings that make everyday lifeat home a little better.

As one of 12 IKEA franchisees around the world, the turnover posted by our eight large IKEA stores inSoutheast Asia – including two in Bangkok plus a Pick-Up and Delivery Point in Phuket – contribute tothe total result released Wednesday by the global franchisor, Inter IKEA Group. Our financial year runsfrom Sept. 1 2018 – Aug. 31 2019.

We own and operate IKEA stores and ecommerce operations in three active markets: Thailand,Malaysia and Singapore. When our retail sales are combined with rental income generated from our three IKEA-anchored shopping centres in the region (including Megabangna), total revenue reached THB 29 billion – 20% more than last year.

“These results show that, even in challenging times, IKEA and our shopping centres have fantasticpotential to grow,” said Christian Rojkjaer, Managing Director of IKEA Southeast Asia. “We make adifference to many people by making life more comfortable, more beautiful, more sustainable – at anaffordable price.”

“We face increasing competition in our markets and changing customer behavior,” he added, “but ourvision to create a better everyday life for the many people is perhaps more powerful than ever. We aimto offer the best deal there is in every market and we have a wide price ladder within our range. So,even in tough times, IKEA has something for everyone no matter the size of his or her wallet.”

“Our shopping centres add to the total value by creating meeting places that are the hub of thecommunity – and, together with IKEA, provides a great day out.”

Thailand Highlights

IKEA Bangna | IKEA Bang Yai |IKEA Pick Up and Delivery Point Phuket | Megabangna

  • First full year of operation for our IKEA Bang Yai store and the first IKEA store in the world toachieve the highest possible green building certification – LEED Platinum.
  • Launch of our IKEA online store in June, giving Thais across the country easy access to our fullrange of more than 8,000 Swedish home furnishing products at an affordable price.
  • Megabangna achieved a lease rate of 100%, opened a community park and a new kids’ zonewith tenants that offer everything from active entertainment and play spaces to art classes.

Facts and Figures

IKEA Southeast Asia FY19

  • 1 new IKEA store opened, IKEA Batu Kawan in Penang, Northern Malaysia
  • 2 new stores under construction: in Philippines and Mexico, where we are also the franchisee
  • 51.7 million visits to IKEA websites with new navigation and inspiration – up 16% from last year
  • 850,000 energy-saving LED lightbulbs sold to customers across the region
  • 353,000 IKEA orders delivered to homes in our three markets - up 38% from last year
  • 700,000 pieces of furniture assembled for our customers – three each minute!
  • 28,102 solar panels generating renewable energy from our rooftops and reducing our costs
  • 1,448 shops and kiosks for tenants in three shopping centres (including IKEA stores)
  • 1 Shopping centre under construction: Toppen will be anchored by IKEA Tebrau in SouthMalaysia; opening November 13, 2019
  • 42% increase IKEA for Business sales to customers who furnish and decorate everythingfrom restaurants to apartment show suites with IKEA products. 

 

Our results are achieved in large part with our many business friends, non-profit partners,government authorities and many others who have supported our journey in Southeast Asia.

Learn more about the franchise system and IKEA facts & figures on our new brand platform About.IKEA.com